• 2015 net loans to grow in line with the current nominal run rate• Cost/ income ratio now to be less than 40% by the end of 2017

Phillip Monks, CEO, commented:

“2014, was another great year with profit before tax on a like for like basis more than double that generated in 2013 and a return on equity approaching 20% for the second six months of the year.”

“We continue to support SMEs and homeowners with our straightforward products and granted £2.4bn of new loans in 2014, our highest level to date. Our innovative online savings franchise also goes from strength to strength, with total deposits up by 29% to £4.5bn overall and, within this, SME deposits almost doubling to over £1bn.”

“Our confidence in the outlook is reflected in our improved guidance. In 2015, we again expect to grow net loans in line with the current nominal run rate. We will continue to leverage our legacy-free operating platform and I now expect to deliver a cost/ income ratio of below 40% by the end of 2017.”